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AI Trade Rebounds After Oracle Funding Jitters Trigger Tech Selloff

Investors weigh funding strains against fresh signals of hot chip demand.

Overview

  • Financial Times reported that Blue Owl Capital pulled back from a $10 billion Oracle data‑center deal, pressuring Oracle shares and reviving concerns about its debt‑financed AI buildout; Oracle has denied reports of delays to OpenAI‑related facilities.
  • Oracle’s latest quarter showed negative free cash flow and a jump in full‑year capex guidance to $50 billion, intensifying scrutiny of AI infrastructure spending, leverage and physical constraints like power and cooling.
  • AI infrastructure and chip names led a market slide on Wednesday, with Nvidia, AMD and Broadcom among notable decliners as the Nasdaq logged its weakest session in nearly a month.
  • Micron beat revenue and profit expectations and guided strongly, spurring a rebound in tech on Thursday as traders reassessed near‑term AI demand.
  • Nvidia told Chinese clients it is evaluating added H200 capacity after orders exceeded current output, following U.S. clearance for limited China exports that carry a 25% revenue fee, even as analysts debate the durability of Chinese demand.